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partnership loss, $14,888. In the statutory notice of deficiency
which provides the basis for our jurisdiction in this case,
respondent determined that the Gordon-Wylies are liable for
additions to tax under section 6653(a)(1) and (2) in the
respective amounts of $256 and 50 percent of the interest due on
a $5,117 deficiency. Prior to issuing the notice of deficiency,
respondent did not make inquiries of the Gordon-Wylies concerning
the proposed adjustments, nor did respondent provide them with an
opportunity for an administrative appeal.
The Garritys
During 1983, petitioners James R. Garrity and Sandra T.
Garrity assisted in operating a family-run Exxon Service Center.
Mr. Garrity has a bachelor’s degree in business and has taken
basic courses in taxes and economics. Mrs. Garrity has a high
school education and has no academic background in taxes,
economics, or finance.
Mr. Trimboli had been assisting the Garritys and their
family with their personal and corporate tax returns for several
years prior to 1983. The Garritys knew that Mr. Trimboli would
likely receive a commission for selling them an interest in Arid
Land. In December 1983, the Garritys purchased five units in
Arid Land through Mr. Trimboli for a total of $5,500 in cash and
a promissory note of $8,250.
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